Dec. 19， 2024 - Sojitz Corporation (“Sojitz”) has reached a basic agreement together with iron ore producer Champion Iron Limited (“Champion”) and Nippon Steel Corporation (“Nippon Steel”) to participate in the Kamistiatusset Project (“Kami Project”), a new direct reduction (“DR”) quality iron ore mine project under development in Canada’s province of Newfoundland and Labrador by Champion. 

The Kami Project is anticipated to produce DR quality iron ore that is indispensable for steel production, which can drastically reduce CO2 emissions through processing with the electric arc furnace method. Sojitz, Champion, and Nippon Steel will establish a partnership to conduct feasibility study for development of a DR quality iron ore supply. 

The partnership will involve an initial contribution of $245m from Nippon Steel and Sojitz for a 49% stake in the project, with Champion Iron retaining a 51% equity interest. 

The partners will share development and construction costs according to their ownership interests, potentially providing up to $490m in contributions before Champion requires additional capital. 

A definitive feasibility study (DFS) is expected to be completed by mid-2026, with a 48-month construction period following a final investment decision (FID). 

Upon closing, Champion will hold a 51% equity interest in Kami, while Nippon and Sojitz will have 30% and 19% stakes, respectively.